§ Mr. HowardTo ask the Chancellor of the Exchequer what assessment he has made of the impact of the climate change levy on manufacturing productivity. [R] [10256]
§ Mr. BoatengThe climate change levy is a broadly revenue neutral instrument which will raise the relative price of energy but lower the relative cost of employment.
The impact on any specific sector or industry will depend on a number of factors including:
The future energy consumption of firms in the sector and the use they make of levy funded energy efficiency support.Employment levels in those sectors and the benefits received from the levy funded reductions in employers' national insurance contributions.The number of energy intensive firms in that sector that are eligible to receive a discount on the main rates of the levy by signing up to an energy efficiency agreement.What use firms in that sector make of electricity generated from levy exempt sources of energy such as new renewables and combined heat and power.
§ Mr. BercowTo ask the Chancellor of the Exchequer what plans he has to widen the discount schemes for the climate change levy. [14432]
§ Mr. BoatengThe Government have no plans to amend the eligibility criteria for businesses entering into negotiated agreements for improving energy efficiency in return for 80 per cent. discounts of the climate change levy.